HUNDREDS of small businesses in Worcestershire could fall foul of the law after a survey revealed less than a third knew employees would soon be legally entitled to pensions.

Finance Line, a quarterly survey from Taylor Nelson Sofres Finance, revealed 67 per cent of businesses with turnovers between £250,000 and £1m knew about next April's ruling, compared with only three out of 10 small businesses.

It is calling on Ministers to launch an advertising campaign to inform Worcestershire's small companies.

"Clearly the Government needs to do a lot more work in the next few months to communicate to small businesses the implications of statutory employee access to pensions," said Tim Wragg, director of Taylor Nelson Sofres Finance.

"Thousands of small businesses may still be unaware of their legal obligations next year unless the Government invests in a targeted information campaign now."